ETF Spotlight on WisdomTree Dreyfus Brazilian Real (BZF), part of a weekly series.Assets: $97 million

Holdings

BZF typically invests in a combination of U.S. money market securities with forward currency contracts as well as currency swaps. Like all of WisdomTree’s currency funds, it is not a money market fund.

Objective

BZF seeks to achieve the total returns that reflect money market rates in Brazil and the changes in value of the Brazilian real relative to the U.S. dollar.

Of Note

• BZF is one of the top-performing currency ETFs year-to-date, up 24.3%
• Brazil is still considered an emerging market, so its currency can be subject to high volatility
• The expense ratio is 0.45%

The Latest News

• The real strengthened on Wednesday in anticipation that the Federal Reserve would keep interest rates where they are in order to spur on economic recovery
• The real has been boosted in recent weeks by strong corporate earnings, rising equity prices and higher metal prices
• Merrill Lynch says the real may climb another 7% in the next month, reports Fabio Alves for Bloomberg
• Brazil’s Bovespa index recently reached an 11-month high after ending July with its best monthly gain since 1995, write Alexander Ragir and Emily Schmall for Bloomberg

For more information on currency ETFs, check out our special report.

Tags: Brazil, Brazilian Real, BZF, Currency ETFs, Emerging Markets, ETF 101, ETF Spotlight, Latin America